Problem 4-1A Preparing journal entries for merchandising activities-perpetual system LO P1, P2 30 Prepare journal entries to record the following merchandising transactions of Cabela's, which uses the perpetual inventory system and the gross method. Hint It will help to identify each receivable and payable; for example, record the purchase on July 1 in Accounts Payable-Boden July 1 Purchased merchandise from Boden Company for $6,400 under credit terms of 2/15, 1/30, POB shipping point, invoice dated July 1. 2 Sold merchandise to Creek Co. for $950 under credit terns of 2/10, 1/60, on shipping point, invoice dated July 2. The merchandise had cost $933. 3 Paid $105 cash for freight charges on the purchase of July 1. 8 Sold merchandise that had cost $1,700 for $2,100 cash 9 Purchased merchandise from Leight co. for $2,800 under credit terns of 2/15, 1/60, POB destination, Invoice dated July . 11 Returned $800 of merchandise purchased on July 9 from Leight Co. and debited its account payable for that amount. 12 Received the balance due fron Creek Co. for the invoice dated July 2. net of the discount. 16 Paid the balance due to Boden Company within the discount period. 19 Sold merchandise that cost $1,000 to Art Co. for $1,500 under credit terms of 2/15, 1/60, POB shipping point, invoice dated July 19. 21 Cave a price reduction allowance) of $250 to Art Co. for merchandise sold on July 19 and credited Art's accounts receivable for that amount. 24 Paid Leight Co. the balance due, net of discount. 30 Received the balance due fron Art Co. for the invoice dated July 19, net of discount. 31 Sold merchandise that cost $5,200 to Creek Co. for $6.900 under credit term of 2/10, n/60, POB shipping point, invoice dated July 31